Negative Customer Experiences And Intellectual Liabilities In Construction Industry

The paper aims to elaborate how customers' negative experiences are perceived and encountered in construction business. Negative experiences are investigated through intellectual capital approach. Special interest lays in intellectual liabilities that are categorized into two main categories: 1) obligations or risks and 2) depreciation of intellectual capital. The paper applies qualitative research approach with empirical data gathered by interviewing 10 employees representing four different construction companies in Finland. Analysis of the interview data leads to the recognition of six major antecedents of intellectual liabilities. Considering the first aspect of obligations or risks, the most important detected antecedent was the mismatch between customers' expectations and end product. In addition to unmet expectations, another obligation or risk was the overall lack of trust towards construction industry. These two underlying phenomena need to be overcome in every customer encounter with open communication. Empirical examples on the second aspect of intellectual liabilities, that is, depreciation of intellectual capital, were more diverse. Those included undervaluation of customer, loss of trust during or after the construction project, problems in co- operation and coordination of network partners and inability to proactively respond to product/ service failure. Recognition and understanding the possible implications of these intellectual liabilities on business performance provides various possibilities to improvement and enhanced management of intellectual capital.